IPO of A&R's QGM subsidiary in Australia
31/10/2006
Press Release
- IPO of Australian subsidiary, Queensland
Gold and Minerals Limited to raise up to A$6.00
million.
- Minimum listing requirement
of $3.00 million underwritten.
- Encouraging preliminary
results from Oxiana JV at Warroo.
Angus and Ross (“A&R” or “the Company”)
is pleased to announce that A$3 million of the forthcoming initial
public offering on the ASX of its Australian associate, Queensland
Gold and Minerals Limited (“QGM”) has been underwritten
by Sydney brokers, Martin Place Securities.
The offer is expected to close on 8th December and is open to receive
up to an additional A$3 million over and above the amount underwritten – at
A$0.20 per unit. (A unit consists of one share and a quarter
of a warrant exercisable for two years at A$0.20). Trading
of the shares on the ASX should commence on 29th December 2006.
A&R, which previously owned 52.5% of the issued share capital
of QGM, currently holds 48.22% (14.7 million shares) following the
successful raising of A$750k mezzanine finance in April this year,
and the capitalisation of A$500k of loans owed by QGM to A&R. Assuming
only $3.00 million is subscribed in the new issue Angus & Ross’s
interest in QGM will be 31%. If the full $6.00 million is raised
then this percentage is reduced to 24%.
QGM has a number of Queensland tenements prospective principally
for gold, amongst which is Warroo. According to joint venture partner
Oxiana “The ongoing field programme involving geological mapping,
rock chip, soil and drainage sampling around known and new prospects
has provided highly encouraging results. Rock chips assaying between
3-30 g/t gold were collected in an area not previously sampled to
the southwest of the historic workings and mapping indicates alteration
to be more extensive than initially anticipated. Results from recent
soil geochemical sampling and geophysical surveys are being compiled
to prioritize drill targets”
A&R Chairman Robin Andrews today said “The underwriting
of QGM’s public offering provides us with great confidence
for its future and allied with the initial news from our joint venture
at Warroo and the experience of our partner there, Oxiana, we are
led to believe that QGM will prove to be a significant and successful
investment for A&R.”
- Ends -
For further information
contact:
Angus & Ross
plc
Robin Andrews, Chairman +44-1751 430 988
Paul Williams, Finance Director +44 1606 855022
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